Supply and Marketing Department (000564. SZ) disclosed its 2026 semi annual report on August 28th. Data shows that the company achieved a net profit attributable to shareholders of the listed company of 26.5479 million yuan in the first half of the year, a year-on-year increase of 398.54%.

Under the combination of a series of asset revitalization and strategic implementation actions, this supply and marketing listed company positioned as an "urban and rural circulation infrastructure operator" is undergoing a turning point from "strategic layout" to "collaborative realization".

Acquisition landing and asset revitalization: removing flaws and adding new wings to the balance sheet

In the first half of this year, Supply and Marketing Daji completed a key action - transferring 100% equity of its wholly-owned subsidiary Changchun Meilifang Minsheng Shopping Center through listing. Although the consideration for this transaction was 1 yuan, it contributed approximately 441 million yuan in profits to the listed company. Essentially, this is a structural adjustment that involves divesting loss making assets at a price of 1 yuan and using light equipment to improve the income statement.

More importantly, incremental layout. On August 18, 2026, Supply and Marketing Daji completed the acquisition of Beijing Huinong Feng'an Agricultural Product Supply Chain Management Co., Ltd. (formerly known as Guotou Agricultural Product Supply Chain (Beijing) Co., Ltd.) with a 60% shareholding ratio, and the target company was officially included in the consolidated financial statements. Huinong Feng'an mainly engages in bulk trade of grain and by-products, with a revenue of 561 million yuan and a net profit of 6.3098 million yuan in 2025, a year-on-year increase of more than 28 million yuan, and total assets of 1.56 billion yuan. The significance of this move is that the Supply and Marketing Department has officially filled the gap in the basic agricultural product supply chain in the commodity trade sector, connecting the entire chain of "international procurement warehousing logistics terminal distribution".

Between one decrease and one increase, the outline of the company's main business becomes clearer.

The synergy of the three main businesses: 22 commercial streets, 9 logistics parks, and a distribution network

The business foundation of the supply and marketing hub is evolving from a dispersed asset package to a "point line surface combination" urban-rural two-way circulation system - with business premises as points, commodity trade as lines, and logistics hubs as surfaces. The three main businesses are moving from individual efforts to collaborative development, and a flow network covering urban and rural areas is transforming from a blueprint to a reality.

In terms of commercial operation, its "Xingyue Mao" brand has operated 22 underground civil air defense commercial streets nationwide, with a comprehensive investment rate of about 95% for ongoing projects. Minsheng Department Store Luoma Market Store completed the brand upgrade to "Xingyue Mall", and introduced the anime theme and trend brand; Yan'an store focuses on the Ole customer group, with a 13 percentage point increase in occupancy rate compared to the beginning of the year; Haikou Wanghai International is promoting the renovation of three, five, and six floors to create a composite commercial space that integrates island residents' tax-free, dining, and boutique services.

In terms of commercial logistics, the number of collection and distribution centers and logistics parks managed by the company has increased to 9, with an operating area of nearly 800000 square meters. In the first half of 2026, the first opening area of China Supply and Marketing Huaihua Agricultural and Rural Industrial Park and China Supply and Marketing Zhijiang Commercial Logistics Park will successively open and operate, accelerating the densification of urban and rural circulation nodes in the central region.

In terms of commodity trade, the company focuses on optimizing supply chain channels and building marketing matrices, expanding its retail and wholesale business around core product lines such as fresh fruits and vegetables, alcoholic beverages, and daily necessities. It actively participates in the construction of free trade ports, and strives to expand innovative businesses such as agricultural product supply chains, cross-border trade, and island duty-free services, injecting new momentum into the transformation and upgrading of the trade sector.

Policy dividend window opens: County consumption growth leads the way

On August 18th, the Ministry of Commerce and nine other departments jointly issued the "Opinions on Further Stimulating the Vitality of Submerged Markets and Activating County Consumption", which clearly proposed to promote large-scale distribution enterprises such as supply and marketing to extend services to remote areas. The policy is aimed at the sinking market and the two-way circulation between urban and rural areas, which is the core direction of the strategic layout of the supply and marketing industry for many years.

From industry data, the retail sales of consumer goods in rural areas increased by 2.5% year-on-year in the first half of the year, with a growth rate consistently higher than that in urban areas. County level consumption is currently the most certain source of incremental growth in the consumer market. Among them, the company's "Xingyue Mao" commercial street has formed a multi-level consumer terminal gradient layout from provincial capital cities to county-level markets, with a cumulative passenger flow exceeding 300 million by 2025. Multiple projects have been selected as typical cases of underground space development by the Ministry of Natural Resources. The company has also signed strategic cooperation agreements with well-known brands such as Luckin Coffee, promoting the extension of consumer experience to counties and towns, and enriching the commercial ecology of the sinking market. At the same time, 9 collection and distribution centers and logistics parks of the Supply and Marketing Department have taken root in the county, with an operating area of nearly 800000 square meters, distributed in central Hunan, Jiangyong, Wufeng, Pingjiang, Yidu and other places. Around the local characteristic agricultural industry, a two-way circulation network of "county hub+city node" has been built.

The sinking market is a common focus of policy and business. The circulation network covering urban and rural areas constructed by the supply and marketing hub is the physical anchor point of the incremental market, and a two-way circulation business loop is gradually forming.

From 'asset revaluation' to 'value revaluation'

Short term performance fluctuations are a normal phenomenon during the main business ramp up period. What determines the value of a company is never the book figures of one or two quarters, but the strategic positioning and resource endowment.

From the perspective of asset base, the company operates and manages approximately 2.84 million square meters of high-quality properties, strategically distributed in 19 provinces and 53 cities across the country, forming a multi-level asset layout of "new first tier city landmarks+second - and third tier regional hubs+third - and fourth tier potential assets". Property types include shopping centers, department stores, community businesses, office buildings, hotels, underground civil air defense businesses, and collection and distribution centers. From Chongqing Poly Tower and Qingdao Wanbang Center in new first tier cities, to Haikou Wanghai International and Tianjin International in regional hub cities, and to underground civil air defense commercial and collection distribution centers in third - and fourth tier cities and county-level markets, the asset matrix covers the depth of consumer hierarchy.

The market typically evaluates such companies based on a heavy asset logic - looking at property types, calculating rental returns, and estimating asset discounts. But the value anchor points of the supply and marketing hub may need to be re examined: the underground civil air defense commercial card is the flow entrance for county-level consumption upgrading, the collection and distribution center anchors the logistics nodes for two-way urban-rural circulation, and the bulk trade of agricultural products connects the supply chain capacity from fields to dining tables. These assets may be undervalued in traditional evaluation frameworks, but their strategic value deserves attention in the context of accelerated restructuring of the urban-rural circulation system.

With the clearance of inefficient assets, the formation of circulation networks, and the release of policy dividends in the sinking market, the pricing logic of the market for supply and marketing consolidation may also need to shift from "asset revaluation" to "value revaluation".